LINN Energy’s Hugoton Basin position consists of oil and natural gas properties located in southwest Kansas extending through the Oklahoma Panhandle into the central portion of the Texas Panhandle.
The Company’s Kansas and Oklahoma Panhandle properties primarily produce from the Council Grove and Chase formations at depths ranging from 2,200 feet to 3,100 feet. LINN’s Texas properties in the basin primarily produce from the Brown Dolomite formation at depths of approximately 3,200 feet. The Company’s properties in this region are primarily mature, low-decline natural gas wells.
Hugoton Basin proved reserves represented approximately 28 percent of total proved reserves at December 31, 2014, of which 83 percent were classified as proved developed. This region produced 188 MMcfe/d or 15 percent of the Company’s 2014 average daily production. During 2014, the Company invested approximately $52 million to develop the properties in this region. During 2015, the Company anticipates spending approximately two percent of its total oil and natural gas capital budget for development activities in the Hugoton Basin region.